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$ 15. Your Airport as a Business general Key Po i nt Airports operate in an environment extensively regulated by federal, state, and local governmental agencies and possess a host of characteristics that mirror public utilities. However, it is important that policy makers understand and affirm the need to employ good business practices to achieve success in the delivery of aviation services A Typical to the Business public. These practices Process: are discussed below, but are generally driven by the airport's vision, mission, and strategic plan. A Typical Business Process: D i s cu s s i on Strategic Annual Annual The Airport Vision Mission A typical business process includes the following: Plan Goals Budget Vision Mission Strategic Annual Annual Plan Goals Budget Vision. Visions vary of course, but many focus on the airport being seen as the front door to the community, a gateway to the world, and a premier provider of customer service. Mission. A typical airport mission might be to serve the aviation needs of the community, safelyPlan Strategic and efficiently. Strategic Plan. A good strategic plan establishes the direction and priorities of the F INAN C IAL airport. The depth of an airport's strategic plan normally varies depending upon its size and challenges, but the elements of this plan generally include those shown to the right. Business Plan Annual Goals. Broad objectives and goals typically flow from the individual tasks included in the airport's strategic plans. Land Use Marketing Annual Budget. Budgets focus on expenses and revenues (see Plan Plan Issue Paper # 13 Financial: Sources and Uses of Operating Funds). Policy makers need to understand the importance of Strategic striving to ensure that the airport operations be as financially self- Plan Strategic sufficient as possible. Not only is this objective founded in sound PlanAirport business practice, the FAA mandates this in the assurances Air Service made part of its grant agreements (see Issue Paper # 19 Rules: Master Plan Plan Complying with Federal Grant Assurances). Plan rules Business Plan 36 Land Use Marketing

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Airpor t Business Prac tices GENERAL Airport Rates and Charges. Establishing nondiscriminatory rates and charges for use of airport facilities and amenities on fair and reasonable terms and conditions is not only a good business practice but is mandated by the FAA for those airports accepting AIP grants. Other principles of airport rate-making procedures as dictated by the FAA include: Using revenue derived from the airport solely for airport capital and operating costs (see Issue Paper #17 Financial: Use of Airport Revenue); Charging fair market value for non-aeronautical use of airports; and Being aware that federal law and policies on reasonableness of fees and economic discrimination do not apply to non-aeronautical uses. Performance Measurement. Many airports establish standards and then measure performance. Customer service is an example of one such activity. Benchmarking is also a common practice, especially for large airports, to help determine how it is performing relative to other peer airports. By conducting surveys and measuring performance, the governing body is ensuring, to the greatest extent possible, that the highest quality aviation services are provided to the public. THE AIRPORT Rules and Regulations and Minimum Standards. The adoption and use of airport minimum standards, rules, and regulations and leasing policies clearly define and clarify roles, responsibilities, expectations, and obligations to those seeking to conduct business or utilize airport property (see Issue Paper #18 Rules: What's Expected of Airport Tenants and Users). Human Resource Plan. A good business plan will normally include elements related to human resources and staffing needs. This plan focuses on the need to provide continuous learning and professional development of airport staff as well as employment of other best management practices. Transparency. Enactment and employment of basic business practices are also necessary in order for the airport governing body to conduct its business in the most transparent and responsible manner possible. Codifying policies and procedures for accounting practices, the procurement of goods and services, and acceptable avenues for investment of airport funds ensures that the general public as well as management staff and members of the airport's governing body clearly understand how the airport conducts its affairs. FINANCIAL App l i c at i o n Become familiar with the business practices your airport employs. Embrace the principles noted above and support airport management in its daily implementation of them. Support development and training of staff, even with tight budgets. Compare your airport's business practices to other airports of similar size and with similar goals. RULES 37